Reliance Retail is in talks with Electronics Mart India, a consumer durables retail chain, for a possible acquisition. Electronics Mart operates 60 stores in South India with 1,200 employees on its roll.
According to a source close to the development, talks are underway on the valuation of the chain, and the ask price is Rs 3,000 crore.
Businessman Pavan Kumar Bajaj started the electronics chain in 1980 as “Bajaj Electronics”, and later changed its name to EMI Ltd.
The acquisition, if successful, will give a boost to Reliance Retail’s offline presence in South Indian markets. The Mukesh Ambani-led company recently acquired Future Retail, which also sells electronics from its stores. But the acquisition of an additional chain that has both online and offline presence will help Reliance Retail to scale up its electronics business faster in the South.
EMI competes with other chains like Tata-owned Chroma, Vijay Sales, and Kohinoor, and has a significant presence in Telangana and Andhra Pradesh.
An email sent to EMI did not elicit any response.
A Reliance Industries (RIL) official declined to comment.
Sources said a significant amount of money raised by Reliance Retail from investors like KKR and Silver Lake would be used by the company to acquire assets in India, adding value to its present set-up.
“The company is expecting more investors to come on board in the coming months and will be deploying funds in acquiring new markets,” a source said.
RIL operates its retail business via its subsidiary Reliance Retail Ventures Ltd (RRVL). The company is operating the consumer supply chain business and consumer retail business through its subsidiaries. RRVL reported a consolidated turnover of Rs 1.63 trillion and a net profit of Rs 5,448 crore for the year ended March 31, 2020.
Reliance Retail has big plans for the future, including an omni-channel play and greater association with farmers, manufacturers, and kirana store owners with the help of high-end technology. The UK media reported on Wednesday that the company was in talks with failed retail chain Debenhams in the UK.
RIL’s buying spree
- Buys Future Retail to Rs 24,713 cr
- RIL acquired toy store chain, Hamleys in 2019
- RIL in talks to buy UK chain, Debenhams
- In talks to buy smaller chain in India